To what extent are transfer fees collectable from a Canine Dimensions franchisee in Washington?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, transfer fees are collectable from franchisees in Washington only to the extent that they reflect the franchisor's reasonable estimated or actual costs in facilitating the transfer. This means Canine Dimensions cannot charge an arbitrary or inflated transfer fee; it must be tied to the actual expenses they incur.
This provision protects franchisees from excessive or unfair transfer fees that could hinder the sale of their franchise. It ensures that Canine Dimensions can only recover legitimate costs associated with the transfer process, such as administrative, legal, or training expenses for the new franchisee.
For a prospective Canine Dimensions franchisee in Washington, this is a beneficial clause. It provides some assurance that if they decide to sell their franchise, the transfer fees will be reasonable and justifiable. Franchisees should still carefully review the franchise agreement and any related documents to understand exactly what costs Canine Dimensions may include in the transfer fee calculation. It is also advisable to seek legal counsel to ensure full understanding of their rights under Washington state law.